From April 2022, national insurance contributions for sole traders (Class 4) and small business owners (Class 1) will increase 1.25%.
This rise is to fund social care costs, and from 2023 onwards the increase will appear on pay cheques as a separate levy.
Here’s how those increases will translate:
The industry has taken a battering over the past eighteen months, and these tax increases are bound to hit the sector hard.
Smaller construction firms are already struggling to stay afloat, and with rising material and labor costs it’s expected that 50,000 people will lose their job.
As always we are keen to know what you think.
How are you and your business adapting?
What will the increase in National Insurance mean for your profits? Is the increase justified?
Share your story in the comments below.